February 24, 2000 (Westport, CT) – More than a third of U.S. online consumers prefer e-retailers that also have a brick and mortar presence. And surprisingly, this preference is most pronounced (44 percent) among the youngest population segment – those under 25 years of age. These and other unexpected findings were revealed in a new study* of 1,000 e-consumers conducted by Digital Idea, an Internet consulting firm that helps companies make fact-based decisions about their interactive marketplace strategies.

"Conventional wisdom says that Internet-savvy younger consumers are the most comfortable with the online shopping experience," said Peter Mackey, president, Digital Idea. "But our findings suggest that when it comes to spending their hard-earned dollars, a large number of these individuals prefer the reassurance of a traditional retailer standing behind their product purchase."

This finding also characterizes older (55+) e-consumers. In the Digital Idea study, some 41 percent of mature adults also expressed a preference for e-retailers that have a brick and mortar presence.

The specific product categories where e-consumers found it most important to have a physical store were apparel (61 percent), appliances (60 percent) and groceries (48 percent). Within the grocery category, the under-25 group (61 percent) stood out as the predominant one desiring brick and mortar stores behind their online grocery purchases. "This should cause some marketers to take notice given that the vast majority of grocery- related e-businesses are still Internet pure plays," said Mackey.

Other compelling findings in the Digital Idea study were these:

• A large majority of online shoppers – 68 percent – want contact with a live customer service representative, with telephone access (65 percent) overwhelmingly preferred to online access (35 percent). "Live human contact continues to be an extremely important dimension in purchase behavior," said Mackey. "In many instances, consumers use the Internet for ‘window shopping.’ But when it actually comes to buying something, they like the support and interaction of a live person."
• In the past three months, an astounding 82 percent of respondents visited an online site as a result of traditional advertising. "Despite the huge clutter during the fourth quarter of 1999, TV, print and radio advertising were effective in driving people to marketers’ Internet sites," said Mackey.
• Virtually all e-consumers – 97 percent – were aware of the AOL Time Warner merger. But seven out of ten foresaw no personal benefit from this consolidation. "Consumers tend to view corporate mergers as financial plays," said Mackey. "With regard to a personal benefit, they adopt a ‘wait and see’ attitude. I think this also reflects the perspective of Web consumers – big is not always better."

*The Digital Idea study was conducted through the firm’s strategic partner, Greenfield Online, Inc. via their proprietary Internet-user panel.